Fundmntls of Intrntionl Businss - Essay Example

Fundmntls of Intrntionl Businss Undrstnding th structur nd volution of intrntionl trd in goods nd srvics is ssntil for firms tht wnt to xport som products. Firms scnning th world mrkt for opportunitis to divrsify products nd mrkts, s wll s supplirs, must hv dtild sttisticl informtion on intrntionl trd flows in ordr to utiliz rsourcs ffctivly. In 2003 th world xport (sum of ll countris) ws qul to USD 8,819,000,000,000 (Th World Fctbook).Intrntionl trd is closly connctd with conomic growth nd tchnologicl chng, drmtic incrss in world trd in goods, srvics nd finncil ssts in lst dcds r du to drstic conomic chngs nd tchnologicl dvncs.

ctul tchnologicl dvlopmnts hv strong implictions for world trd nd output growth. Tchnologicl dvncs drsticlly rducd th trnsporttion nd tlcommuniction costs nd drmticlly chngd th structur of intrntionl trd in th sm tim. In fct, nw tchnologicl chngs lowr th nturl brrirs of spc nd tim tht sprt ntionl mrkts whil librliztion policis th rtificil brrirs to th intrntionl movmnts of goods, srvics nd cpitl. Tchnologicl dvlopmnt my b ccptd s th ngin of th conomic globliztion in th world. Th lvl of tchnology, brodly spking, cn b dfind s stock or combintion of our knowldg nd xprincs on production procss, product qulity, orgniztion of production nd mngmnt, mrkting nd srvics (Kibritcioglu, 1997).

In ll countris, th primry xport sctor is mnufcturing industry, xcpt th Middl strn nd fricn countris which r rltivly rsourc bundnt nd hnc, xport minly mining sctor products or oil. Tchnologicl dvncs is th ky fctor in th growing volum of intrntionl trd of goods nd srvics. Tchnologicl gp btwn industrilizd nd dvloping countris s sourc of forign trd, on th othr hnd, my b closd ithr du to th continul dissmintion of informtion from th dvncd ons or both. Thr r mny intrntionl orgniztions tht fcilitt forign trd.

mong thm th most importnt nd ctiv is World Trd Orgniztion. Th WTO ws crtd on 1 Jnury 1995 to rplc th Gnrl grmnt on Triffs nd Trd (GTT), sris of post-wr trd trtis intndd to fcilitt fr trd. Th WTO hd 76 mmbrs t its crtion. furthr 72 mmbrs joind ovr th following tn yrs, th ltst (s of 16 Fbrury 2005) bing Cmbodi on 13 Octobr 2004. Dvloping countris now ccount for two-thirds of th WTO's mmbrship. WTO srvs s th forum for on-going multiltrl trd ngotitions imd t librlizing world trd nd dministrtion of th rsulting trd grmnts.

WTO lso hs disput sttlmnt systm dsignd to rduc trd friction through intrprttion of th grmnts nd commitmnts. Th most fundmntl WTO ruls of goods trd involv non-discrimintion, both in th form of ntionl trtmnt (prohibiting discrimintion on th bsis of ntionlity) nd most-fvord ntion trtmnt (th principl of providing to ll trding prtnrs th sm customs nd triff trtmnt givn to th so-clld "most fvord ntion."). Thr r lso mny othr tchnicl ruls dsignd to nsur mrkt prdictbility(www.wto.com).WTO is n ngin of policy rform, bcus it imposs constnt prssur to rduc triff protction, limint xport subsidis nd provid domstic support in minimlly trd distorting wy s wll s dtrmins mor nd mor th choic of policy tools: from pric support to dirct pymnts to dcoupld support.

Whil th WTO provids forum for multiltrl ngotitions to rduc trd brrirs, it lso stblishs nd nforcs ruls for th globl trding systm.Globl trd nd rising comptition, nd hnc conomic globliztion, induc worldwid conomic growth tht improvs stndrds of living nd qulity of lif. Bibliogrphy:1. Brithwit, John & Ptr Drhos (2000), Globl Businss Rgultion, Cmbridg Univrsity Prss. 2. Dunkly, Grhm (2000). Th Fr Trd dvntur, Zd Books.G. H. Hnson, "Mrkt Potntil, Incrsing Rturns, nd Gogrphic Concntrtion," NBR 3. Ftoumt Jwr nd iln Kw (2004).

Bhind th Scns t th WTO: Th Rl World of Intrntionl Trd Ngotitions/Lssons of Cncun, Zd Books 4. Kibritcioglu, . (1997). On th Smithin Origins of "Nw" Trd nd Growth Thoris. USBF Discussion Ppr No 7.5. G. Mggi nd . Rodriguz-Clr. (ugust, 1998). "Import Pntrtion nd th Politics of Trd Protction," NBR Working Ppr No. 6711.6. www.wto.com